Aqua Logistics extends IPO period, prunes price band

The recent reversal in the stock market forced Mumbai-based supply chain company Aqua Logistics Ltd. to extend its issue subscription period to February 2. Aqua Logistics also trimmed its price band to Rs200 to Rs225 per share from Rs220 to Rs230 a share, following insufficient demand. The company was planning to raise around Rs1.5bn. Aqua Logistics had opened for subscription on January 25, and was supposed to close its book on January 28. As of 5 pm on that day, only 55% of the book had been subscribed. According to reports, qualified institutional buyers (QIBs) subscribed to only around 10% of the book, while high net worth individuals (HNIs) reportedly subscribed to around 72%. Saffron Capital Advisors and Centrum Capital are the book-running lead managers to the issue.
The development is reminiscent of the days in January 2008 when a slew of companies had to defer their issues in the face of investor apathy after extending their subscription period and slashing the price band. Emaar MGF and Wockhardt hospitals were among the prominent ones. There are a few concerns about the fate of some of the other primary market issues, which are either open for subscription, or will open for bidding shortly. Thangamayil Jewellery, Syncom Healthcare and DB Realty are open for subscription, while Vascon Engineers IPO is fully subscribed. DB Realty has already received commitments from anchor investors for over Rs2.7bn.